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The binary compensation plan in network marketing is a pay structure based on the number two.
Basically, each level of your multi-level marketing organization is comprised of two people. Which means, once you mentor two people into your business opportunity, you have filled your front line and set yourself up to create the viral growth typical of these pay structures.
In my experience with the binary compensation plan, you will enjoy three key benefits, which separates this pay structure from all others.
Three Key Benefits of the Binary Compensation Plan
1. In this system, you actually profit from your upline's success. By its nature, the binary system forces your upline to place new members under you. This is often referred to as "spillover," and can dramatically change your residual income, regardless of your level of success in personally mentoring people into the opportunity.
2. Because the binary system only allows you to grow an organization two wide, they almost always offer a "two to infinity" pay payout. That is, no matter how deeply you place new members into your downline, you will make the same amount of commission off of that person's sales and activity. This fact leads to the best benefit of all.
3. Binary pay structures are the best in the world for fostering teamwork up and down the line. Imagine how you would react to your sponsor "stealing" a new recruit from you during an opportunity meeting. In the typical pay plan, this may be grounds for legal action. But, in the binary plan you will still benefit, provided your sponsor allows the system to automatically place that new member beneath you.
Over the past year I have worked with my upline and downline in an incredible environment of "let's help each other build this thing." It is a refreshing change to the typical network marketing routine, and is truly a great benefit to the binary compensation plan.
As any Internet search will demonstrate, you have a choice when it comes to selecting a network marketing company or compensation plan that meets your goals and interests; however, given the three benefits discussed above, the binary compensation plan in network marketing is, in my opinion, the best.
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